April Sound’s UD 4 residents voting on $21M bonds

APRIL SOUND - The residents of Montgomery County Utility District No. 4 will vote on issuing $21 million in “standby” bonds Saturday for improvements to the district’s water and sewer systems.

The bond election is the district’s first in that area of April Sound since September 1978, district board chairman Fred Stowe said. Parts of UD No. 4’s water and drainage system are 40 years old.

Stowe said an in-depth study revealed the need for major capital projects over the next 15 to 20 years.

“Although we don’t have any immediate plans to issue bonds, we’ve got to proceed to keep this system in good shape,” he said.

While UD No. 4 hasn’t issued a new round of bonds in more than 30 years, the district financed projects by refinancing existing bonds, Stowe said. The remaining $5.75 million from the district’s original batch of bonds is being used to pay its share of a new wastewater treatment plant with UD No. 3.

UD No. 3 services the center area of April Sound, while UD No. 4 is responsible for the water services in the eastern and western areas. With 1,500 connections, UD No. 4 is the slightly larger of the two systems.

Speaking to residents at a town hall meeting, Stowe said the district estimates that if it waits five years, it could sell $7.5 million in bonds, and maintain the current tax rate of 48.75 cents per $100 valuation.

“That’s based on similar financial conditions,” he said.

Stowe reports support for the bonds is strong. One reason could be the city of Conroe’s stated intention to annex April Sound in the next two and a half years.

Patricia Finkbiner, a resident in UD No. 4, early voted in favor of the bonds, she said.

“I want Conroe to annex us and they’ll have to assume our debt,” she said.

But if UD No. 4 officials stay true to their time frame, Conroe may end up with a debt-free system.

“We’re not basing our decisions on what Conroe is doing. We’re looking to the future,” Stowe said.